My First Thoughts on Key-To-Cash

Sorry for not posting in a while. After I picked , or should I say, after the program was picked for me, I had to do a little research. I am going to start off with a quick description of the program, and then I will give you my first thoughts on it.

First of all as you can see by the banner ad, this is a cash-gifting program. The basic concept to this program is ..

1. You sign up for this program for a one time, all inclusive fee of $25.00
2. You are asked to create a account with either AlertPay or Safepay
3. Your $25.00 is divided up into 5 payments of $5.00 that goes to the people that have signed up before you, with your referring partner being one of them. This is all done automaticaly for you . Your gifts are put in your account automaticaly also.
4. Although they say this is a program that goes on auto pilot, you need to find at least 5 people to sign up under you.
5. You are given all the banner ads and referal links to promote your website across the web. This is not hard work, but it is not auto pilot either.
6. The website you are given is the one this banner ad is linked to. Everyone uses this one. They state you can customise it, but all that is, is your name at the bottom of the home page.
7. Your name becomes one of 5 on the list that the people you signed up pay. This goes on until you become the first on the list, then you will be 5 layers deep.

I'm not going to go into much more detail because there really isn't any. It is a pyramid program and I am sure everyone knows how they work. You can also click on the banner and take a look at my Custom Website. He he.

My thoughts: well pyramid schemes have been around forever, and they always come back with a new name. Amway was the first big name to use this system successfully. Very successfully I might add. What cash gifting has done, is take the product out of the equation. Now you don't have to sell products, you are just moving the money. In the late 80's people were making huge sums of money on these. The problem that emerged was simple, there were billions and billions of dollars not being taxed by the IRS. This lead to the idea that these pyramids were illegal. They in fact were if you failed to pay tax on the money. There is no doubt that these things work. They work great for the people at the top, ok for the people in the middle, and the bottom people struggle to make anything. The bottom people loose interest, or become frustrated and quit. If people quit faster than people join, the pyramid starts to erode.

My first big concern with this program was, is it legal. I am going to admitt here that I did not want to spend the money for legal advise, although I probably should. Instead I used a few pointed questions to a friend of mine that is a attorney. I don't feel bad about not paying for this because he asks me questions about building all the time. I also talked to my CPA. Do you think I could get a strait answer out of either of them! Not a chance. What I did come away with is this. The current tax law states that you may gift money to anyone and as many people you want not to exceed $12,000. That seems cut and dry to me, but here is where it gets a little gray. You may not accept any compensation for this gift, or expect any kind of compensation in return. This makes a lot of sense if you think about it. Say I was to give my friend $12,000.00 , he turns around and gives it back. It would be very easy for the IRS to loose the tax on that $12,000.00 unless they did a audit on both people. So how is this going to effect me? I think I have to approach this program, Key-To-Cash like this. I am not going to expect to get paid, but if I do, I am going to make sure I pay tax on it and it gets claimed.

I do know people that have made money on these types of programs, but I am the last person to ever go out and bug someone to join something like this. The problem is that my entire success is based on this fact. It is going to be very hard for me to promote this program and harass people to join like you see everywhere else. Not looking good. The good news is that it is only $25.00. Its not a lot of money just to see what happens. I will still give it all the attention that I promised I would in order to get a accurate report. I can't really bash anything if I don't try. You will see the advertisement on this blog. Sorry, if I didn't put it on, I wouldn't be trying.

This last point is very important. Please do not take anything that is posted here or anywhere on the web, as sound legal or financial advice. It is always better to seek out professionals, even in the smallest of circumstances.

Comming up: My paid survey list gets a little updating. Some sites I did well with, but some will have to go in that trash can on my desktop.